Garmin 2008 Annual Report Download - page 94

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72
At December 27, 2008, the company had $36.4 million of tax credit carryover which includes $31.5 million of
Taiwan surtax credit with no expiration. Additionally, the Company had $3.7 million in Taiwan investment credit
which will expire in 2012.
7. Fair Value of Financial Instruments
In accordance with SFAS No. 107, Disclosures about Fair Value of Financial Instruments, the following
summarizes required information about the fair value of certain financial instruments for which it is currently
practicable to estimate such value. None of the financial instruments are held or issued for trading purposes. The
carrying amounts and fair values of the Company’s financial instruments are as follows:
Carrying Fair Carrying Fair
Amount Value Amount Value
Cash and cash equivalents $696,335 $696,335 $707,689 $707,689
Restricted cash 1,941 1,941 1,554 1,554
Marketable securities 274,895 274,895 424,505 424,505
December 29, 2007
December 27, 2008
For certain of the Company’s financial instruments, including accounts receivable, accounts payable and other
accrued liabilities, the carrying amounts approximate fair value due to their short maturities.
8. Segment Information
The Company operates within its targeted markets through four reportable segments, those being related to
products sold into the marine, automotive/mobile, outdoor/fitness, and aviation markets. All of the Company’s
reportable segments offer products through the Company’s network of independent dealers and distributors as well
as through OEM’s. However, the nature of products and types of customers for the four segments vary significantly.
As such, the segments are managed separately. The Company’s marine, automotive/mobile, and outdoor/fitness
segments include portable global positioning system (GPS) receivers and accessories sold primarily to retail outlets.
These products are produced primarily by the Company’s subsidiary in Taiwan. The Company’s aviation products
are portable and panel mount avionics for Visual Flight Rules and Instrument Flight Rules navigation and are sold
primarily to aviation dealers and certain aircraft manufacturers.
The Company’s Chief Executive Officer has been identified as the Chief Operating Decision Maker
(CODM). The CODM evaluates performance and allocates resources based on income before income taxes of each
segment. Income before income taxes represents net sales less operating expenses including certain allocated general
and administrative costs, interest income and expense, foreign currency adjustments, and other non-operating
corporate expenses. The accounting policies of the reportable segments are the same as those described in the
summary of significant accounting policies. There are no inter-segment sales or transfers.
The identifiable assets associated with each reportable segment reviewed by the CODM include accounts
receivable and inventories. The Company does not report property and equipment, intangible assets, depreciation
and amortization, or capital expenditures by segment to the CODM.
Revenues, interest income and interest expense, income before income taxes, and identifiable assets for
each of the Company’s reportable segments are presented below: